Nigeria loses N150 billion due to gas flaring in just 4 months, according to NOSDRA. Between January and April 2023, oil and gas businesses in Nigeria flared 92.3 million standard cubic feet of gas, or mscf, worth an estimated N150.8 billion.
The figure was published in a recent study by the National Oil Spill Detection and Response Agency (NOSDRA). It is a 79.5 percent increase over the 50.3 million standard cubic feet of gas flared in 2022.
As a result, the oil companies responsible for the flaring are set to pay $184.6 million (N85.7 billion) in penalties for violating the gas flaring restrictions in the four months. The report also stated that the volume of gas flared in four months is equivalent to 4.9 million tonnes of CO2 emissions and has a power rating of emission as well as a power generation capacity of 9,200 gigatonnes per hour.
The study stated that 23.2 mscf, 27.1 mscf, 25.9 mscf, and 16.1 mscf of gas were flared in January, February, March, and April, respectively. According to the National Oil Spill Detection and Response Agency (NOSDRA), gas flaring cost Nigeria $266.7 million (approximately N122.949 billion) in three months.
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According to data from the watchdog, oil and gas businesses in the country flared 76.2 billion standard cubic feet (SCF) of gas between January and March 2023. NOSDRA, also stated that the value of gas flared in the three-month period of 2023 was 3.53 percent greater than the $257.6 million, or approximately N118.754 billion. In the same period in 2022, gas flaring cost N118.754 billion.
Furthermore, NOSDRA claimed that the corporations were anticipated to pay fines totaling $152.4 million, or N70.256 billion, as opposed to $147.2 million, or N67.859 billion, as penalties between January and March 2022.
In general, the oil spill detection and remediation agency claimed that the 76.2 billion SCF of gas flared in the first three months of 2023 resulted in 4.0 million tonnes of CO2 emissions and a power generating potential of 7,600 gigawatt hours (GWh). In the same period in 2022, the 73.6 billion SCF of gas flared resulted in 3.9 million tonnes of CO2 emissions and a power generation of electricity (7,400 GWh).
NOSDRA also stated that companies operating offshore flared 39.1 billion SCF of gas, valued at $136.9 million (N63.119 billion), were liable for penalties of $78.2 million (N36.05 billion), saw 2.1 million tonnes of carbon dioxide (CO2) emissions, and had a power generation potential of 3,900 GWh of electricity in the first three months of 2023.
NOSDRA further revealed that 10.805 billion SCF, 15.009 billion SCF, and 13.305 billion SCF of gas were flared in January, February, and March 2023, respectively. Companies operating in Nigeria’s onshore oil area, on the other hand, flared 37.1 billion SCF, valued at $129.8 million, an equal of N59.838 billion, and were subject to penalties of N59.838 billion.
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Were subject to penalties totaling 74.2 million (N34.206 billion), were capable of producing 3,700 GWh of electricity, and caused CO2 emissions of 2.0 million tonnes. In January, February, and March 2023, 12.391 billion SCF, 12.117 billion SCF, and 12.569 billion SCF of gas were flared onshore, respectively.
According to NOSDRA’s analysis of gas flared in 2022, “12 million tonnes of CO2 were emitted into the atmosphere, contributing to global warming, while useful natural gas valued at $0.79 billion was burned by the Nigerian oil and gas industry; equivalent to $450 million in fines, many of which are not collected.”
“In addition, 22,500 GigaWatt hours of potential power generation were lost, equivalent to 511 million people’s annual electricity consumption.”
